Question: Aveo Corp. is considering a project that is expected create monthly cash flows of $1000 in perpetuity, starting in 1 month. The companys annual required

Aveo Corp. is considering a project that is expected create monthly cash flows of $1000 in perpetuity, starting in 1 month. The companys annual required rate of return for projects of this risk is 10%. If the company calculates a profitability index of 1.5 on this project, what is the initial cost of the project?

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